EMC Misses Street Expectations, Revenue Stream Slowing
For several years, EMC reported record revenue and profits quarter after quarter. However, things began to slow down in 2012.Diversified IT products and services giant EMC reported quarterly financial results Oct. 22 that showed modest 5 percent year-over-year revenue growth, but the report also indicated that its revenue and profit streams are slowing down. The storage, virtualization and cloud software and security conglomerate missed Wall Street analyst consensus forecast on both revenue and profit. Revenue totaled $5.54 billion for the third quarter of 2013, well under the $5.79 billion which had been projected by the company and analysts. Net income was $860 million, and the company made 40 cents per stock share for its investors. Analysts had expected 45 cents. The stock closed down 4.75 percent at $24.04 but rebounded a fraction in after-hours trading to $24.10.
For several years, EMC became accustomed to record revenue and profits quarter after quarter, racking up more than 20 consecutive reporting periods in double-digit revenue and profit margins. However, things began to slow down in 2012, and the trend appears to be continuing.
EMC CEO Joe Tucci kept a stiff upper lip, saying in a statement: "Despite our disappointment with our quarterly results, our confidence in the success of our strategy over the long term has never been stronger."